ECONOMY WEEKLY - WEEK OF NOVEMBER 16, 2009

For Immediate Release:

November 20, 2009

Katie GrantStephanie Lundberg(202) 225 - 3130

“As we enter the homestretch, the greatest risk we run is not completing health reform and letting this chance to lay a new foundation for our economy and our country pass us by. We have the building blocks to construct a health-care system that provides the highest quality of care while embodying a process of continuous improvement -- a leap forward for the health of Americans and the fiscal health of the entire nation.”
–Peter R. Orszag, Director of the Office of Management and Budget, 11/20/09

Economy Highlights:

• With the holiday season right around the corner, the Commerce Department reported this week that “some of the nation’s largest retailers, discount and luxury chains alike, posted better- than-expected earnings … and said they were seeing signs of broader stabilization” [New York Times, 11/17/09[1]]. In addition, the improvement in overall retail sales in October was in part driven by higher auto sales, “as demand returned following a sharp drop after the expiration of the government's cash-for-clunkers program.” [Wall Street Journal, 11/17/2009[2]]

• This week, General Motors announced that they are seeing signs of life following their brief bankruptcy and “while it was still losing money, it had stabilized enough that it could take an important symbolic step and begin returning some of the $50 billion that the federal government provided” to help G.M. take “a big step toward a lasting recovery.” [New York Times, 11/16/09[3]]

Recovery Highlights:

• With unemployment at double digits, House Leaders are looking at a variety of options to help create jobs and grow the economy. In addition to Congressional action, the White House announced that President Obama will hold a December 3rd forum on job creation with business leaders and embark on a cross-country tour to highlight Democratic efforts to boost the economy. “Economists say a $787 billion stimulus bill passed in February has helped ease the worst recession since the Great Depression of the 1930s,” but Democrats understand that there needs to be more done to address unemployment and create jobs. [Reuters, 11/17/09[4]]